A.E. = Absolutely Essential for the Future

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• A.E. Absolutely Essential for the Future
• Dave Hage
• Executive Vice President
• Power-One (PWER)

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NEWS FLASH! Power-One Acquires Power Conversion
Group with Alternative Energy

• Acquired Power Electronics Group of Magnetek,
  Inc. for 80M in late October 06
• Will increase revenue by over 50 with overall
  purchase price of only 0.5x forecasted 2007 sales
• The acquisition is strategic and accretive
• Accretive in Q1 of 2007
• 90 of products are digitally based with
  micro/DSPs
• Includes new Alternative Energy Initiative
• Synergies expected to be additive to earnings per
  share
• 0.07per share in 2007
• 0.30 per share in 2008
• Q4 07 exit rate Expect sales 150M and EPS
  0.10
• January 07 changes
• U.S. factory will be shutdown products moved to
  low cost areas
• Dr. Alex Levran joins Power-One as CTO from
  Magnetek

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Power-One Today

• 30 years of success
• A top global power supply company
• Five acquisitions since 1999
• Highly-automated worldwide manufacturing
• Strong balance sheet (45M cash, 80M debt)
• 06 Sales 388M 29 Growth
• Investing 7M/yr in RD for silicon design
• New applications Alternative Energy!

(Now six!)
(Fcst 530-550M)
Today, Power-One is the technology leader in power
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Power Conversion Products for Communications
High-technology Markets
AC/DC Power Powers Telecom, Networking
Industrial Equipment Controls Power at the
System Cabinet
DC/DC Power
Plus Digital Power Management Controls Power on
the Printed Circuit Board
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Power-Ones Customers Acquisition Augments
Premier Customer Base
Bottom Row Shows Significant Additions to PWER
Base
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2005/2006 Major Restructuring/Sales Growth
2007 Integration Execution and Leverage

• 2005 Goal of profitability achieved in Q3 Q4
• Reduction of gt30M in overhead SGA
• High-cost Norway functions moved to low-cost
  Slovakia China
• Telecom Power Systems combined with embedded
  business
• 2006 Return of Growth
• Return of sales growth was 1 goal
• Server Storage and Power Systems growth has
  been dramatic in 2006
• Original goal of 10-15 growth in 06 was at
  high-end without acquisition
• 2007 Executing the acquisition integration plan
• Acquisition will increase sales dramatically to
  530-550M
• Material costs and synergy are highest priority
  to improve profits
• Acquisition management teams are fully
  operational and motivated
• Shutdown Chatsworth, CA facility move products
  to low-cost areas
• Dr. Alex Levran joined as CTO in January 07

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Quarterly Revenue
(M)
Q1 07 estimate range is between 125 to 135M
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Power-Ones History Strategic Direction
Acquired PEG of MAG
Custom Products China Mfg.
Silicon Division
Silicon POLs 1st Power Mgt.
Acquired di/dt
High-density Bricks POLs
Silicon Initiative
Silicon RD Center Startup
Power Systems (Europe/Asia)
Power Systems (North America)
DC/DC Bricks (North America)
DC/DC Conversion (Europe)
AC/DC North America
1998 1999 2000 2001 2002
2003 2004 2005 2006
1997
1973
Strategic Direction
Entered Server/Storage markets acquired Custom
capability AE
A technology leader in powering communications.
Integrated five acquisitions, developed silicon
digital power mgt.
Strategic shift to communications infrastructure
markets acquisitions
Initial Public Offering (IPO)
Founded as AC/DC power conversion company
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Power-Ones New Global Footprint
Ireland
Slovakia
Andover, MA
Switzerland
Hungary
San Jose, CA
Italy
Chatsworth, CA
Baoan, Shenzhen, China
Camarillo, CA
Dallas, TX
Shekou, Shenzhen, China
Dominican Rep.
Carlsbad, CA
Penang, Malaysia
Singapore
Australia
Manufacturing Centers
NEW Mfg Centers
RD Centers
NEW RD Centers
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Acquisition Highlights How Power Conversion
Power Management Are Changing to Digital

• Products range from smart motor driver control
  circuits to large 50KW power modules
• 90 of products are digital implementations with
  micro/DSP and software, including Alternative
  Energy
• Fewer competitors - less commoditization
• Higher margins over time
• Greater functionality - market diversity
• Higher performance
• Software-driven with reduced parts count
  higher reliability
• Augments Power-Ones board-level Z-One digital
  power management capabilities

DSP-based Motor Controls
Digital Smart Appliance Control Management
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Customers Want More EfficiencyDigital is the
Answer

• Power Conversion Changes
• Higher Current/Power
• More Voltages
• Lower Voltages
• Efficiency Importance

• Power Management Changes
• Fault Management
• Thermal Management
• Measure Control
• Efficiency Importance

• Efficiency is Increasingly More Important
• Optimization is crucial for many applications
• Customers are willing to pay more payback is
  getting faster
• Governments are incentivizing
• Green initiatives are gaining acceptance
• Data Centers IT are also incorporating. Annual
  U.S. Data Center Energy Consumption 45 Billion
  kWh, Costing Nearly 3 Billion Dollars

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Digital Adoption Market Drivers

• High-availability requirements
• Energy efficiency is increasingly important
• Costs (total costs to OEM, installers, and
  end-users)
• Incentives from governments payback time
• Levels of digital power include component
  board-level, and system-level management

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A Digital Power Revolution
Changing the Shape of Power
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The Before Unmanageable with Analog
Analog Controller
48 V
Intermediate Bus Voltage (12V)
BRICK DC/DC Converter
POL
POL
POL
V6
V5
V7
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The After Z-One DIGITAL IBA
Intermediate Bus Voltage (12V)
I2C from Host System
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8-output Power System Comparison
BREAKTHROUGH
9
200
lt100
600
3.8 in2
10 in2
3 Days
8 Weeks
90
100
Virtually Unlimited
Limited
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Z-One Power Management Intellectual Property

• Z-One Patent coverage extends into many areas of
  digital power management Hardware, software,
  control methods and techniques
• The Z-One technology is currently protected by
• 13 issued US patents covering 385 individual
  claims!
• Z-One patent protection has been filed for all
  major regions of the world
• There is a robust pipeline of additional Z-One
  IP continuing to move through the US Patent Trade
  Office

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Results for Z-One Digital Power

• We have a significant head-start on the
  competition
• The Z-series IS disrupting the power market
• Licensed technology (second sourcing)
• Module 2nd source in Dec. 04 with CD
  Technologies (top 5 supplier)
• Semiconductor Z-affiliate announced with Atmel in
  July05
• Micrel LDO (Low Drop-Out) regulator IC in Sept
  06
• Silicon Labs joined the Z-Alliance in August 06
• Customers who implement the Z can offer
  products with additional system features and
  benefits
• New markets opened, e.g., Storage Server,
  Military, Aerospace Security
• 400 Z-One design wins (sockets) growing
• Significantly more embedded in the customers
  architecture

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Strategic Initiatives

• Execute on acquisition implementation
• Invest in most advanced power technologies
• Silicon-based products Protect IP
• Leading position in DC/DC bricks new POL
  converters
• Advanced AC/DC front-ends for DPA/IBA markets
• High-density Power Systems for telecom/ISP/infrast
  ructure
• Alternative Energy initiative
• Broaden portfolio into high-end data
  infrastructure
• Gain further traction in Storage/Server markets
  with the Z
• Custom AC/DC power supplies DC/DC converters
• New Telecom Power Systems outdoor cabinet
• Continue to reduce overall cost structure
• Bottom and top-line growth

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• Now More Details on the Presentation Topic
• A.E. Absolutely Essential
• for the Future

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Alternative Energy Digital Control Is
Inevitable Economics Will Rule Help Power-One

• Moores Law (or Less in Analog)
• Analog IC technology Less is Moore Die size
  shrinks by 30 every generation (4-8 yrs)
• Digital IC technology Die size shrinks by 75
  every generation (18 months)
• Digital technology can add functionality at
  virtually no cost
• Across all applications Alternative Energy,
  Power Supplies DC/DC Converters
• Larger, global companies will have leverage in
  material and labor costs

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Alternative Energy Initiative In Power
InvertersUsing Digital Technology to Innovate

• Solar Wind Fuel Cells
• High reliability and efficiency power converters
• High power-density compact size
• Primary energy source control
• Grid interactive control
• System level control

Compact Fuel Cell Power Conditioners
Wind Power Converters
Photovoltaic Inverters
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Global Market (Growing at 20)
Source Power-One Estimates
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A.E. Inverter Competition
Source Power-One estimates
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Keys Points for Power-One

• Global Manufacturing we have the lowest labor
  and material cost due to size. Most major
  competitors are smaller and based in Europe
• Power expertise with over 30 years in power, we
  bring new techniques technologies to the market
  
• We are making a major investment in A.E.
• Products have industry-leading performance
• While late to the market, its still early in the
  game very fast growing for global players

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Alternative Energy Product Portfolio
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Power-Ones Strength in A.E. Designs

• MPPT Maximum Power Point Tracking is the ability
  to harvest maximum energy from PV panels at any
  given light (sun) condition. This ability is
  embedded in both the hardware and software
  design.
• Aurora is top market performer in energy
  harvesting due to the speed of the digital MPPT
  algorithm and high efficiency. (5 more energy
  than others. Source 6 month field observations
  on new PVI-6000-OUTD)
• Two inputs with independent MPPT. Maximum power
  transfer even with poor radiation condition on
  part of the PV array
• Power-One has fast response converters, patented
  software algorithms, and dual-channel tracking to
  minimize losses.
• Industry-leading reliability from 30 years of
  power supply expertise
• True outdoor versions IP65 (NEMA 4x) housing and
  no fan
• Lightweight all Aurora inverters can be
  installed by one person (lt26Kg), reduction of
  installation cost
• Unique digital cancellation techniques on DC
  input maximizes the power transfer without
  affecting the response of the MPPT

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Auroras Features ... Efficiency Where it
Counts

• Flat Efficiency Curve with Peak Efficiency of 97
• Euro efficiency 96,5 (?Euro)
• CEC certifier efficiency 96,5 currently
  unmatched in the market
• No-transformer technology lowers losses with
  maximum efficiencies

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Auroras Features ... Aurora Communications

• Remote communication through either analog modem
  or wireless or Ethernet/Internet
• Alarm dispatching through email, fax or SMS
• Optional web portal service

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New Investor Action with PWER

• December 2006 Added to Ardour Global Index in
  Semi-Annual Reconstitution
• February 2007 A new exchange traded fund (ETF)
  was launched based on the NASDAQ Clean Edge U.S.
  Liquid Series Index. Trading on NASDAQ under
  symbol QCLN, the First Trust NASDAQ Index Fund is
  the first investment product based on this Index,
  which is designed to track the performance of
  clean-energy companies that are publicly traded
  in the U.S.

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Summary Take-a-ways

• 2006 was a return to growth 2007 is a year of
  execution and leverage
• Digital power management is gaining momentum
• Power-One is a consolidator and can compete with
  biggest competitors now 6 in worldwide sales.
• Power-One is the only significant Pure Power
  play
• High synergistic strategic value in
  acquisition very quickly accretive
• Power-One forecasts Q1 07 range to be between
  125-135M with acquisition, 530-550M in 2007
• Forecasting EPS in 2007 to be approximately 0.20
  per share
• Expect to exit 07 at a quarterly run-rate of a
  range around 150M in sales and 0.10 EPS
• Alternative Energy is a long-term strategic
  initiative for Power-One

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Disclaimer Forward Looking Statements

• This presentation contains forward-looking
  statements, which are made pursuant to the
  Safe-Harbor provisions of the Private Securities
  Litigation Reform Act of 1995. Words such as
  forecast, expect, anticipate, will,
  looking, believe and similar expressions
  reflecting something other than historical fact
  are intended to identify forward-looking
  statements, but are not the exclusive means of
  identifying such statements. Forward-looking
  statements are not guarantees, but rather are
  predictions of and make certain assumptions
  regarding anticipated future results.
  Achievement of actual results are dependent upon
  and will involve a variety of risks and
  uncertainties that could cause actual results to
  differ materially from assumptions and
  predictions. Such risks and uncertainties
  include, but are not limited to, the risk that
  Power-Ones and Magnetek businesses will not be
  integrated successfully distraction of
  management as a result of, and the challenges of
  integration and restructuring associated with the
  transaction or other acquisitions, and the
  challenges of achieving anticipated synergies in
  whole or in part costs related to the
  transaction the possibility that the market for
  the sale of certain products and services may not
  develop as expected Power-Ones ability to
  manage its international operations the risk
  that the process of reconciling certain Magnetek,
  Inc. financial information to U.S. GAAP could
  result in changes to Magnetek financial
  statements that adversely impact the Power-Ones
  pro forma estimates regarding the transaction
  the existence or enactment of adverse U.S. and
  foreign government regulation the risk that the
  development of products and services may not
  proceed as planned adverse general domestic and
  international economic conditions including
  interest rate and currency exchange rate
  fluctuations the difficulty of efficiently
  managing the companys cost structure for capital
  expenditures, materials and overhead, as well as
  operating expenses such as wages and benefits due
  to the vertical integration of the companys
  manufacturing processes the possibility that the
  transaction or other contemplated acquisitions
  may not close the impact of competitive products
  or technologies and competitive pricing
  pressures potential business disruptions,
  including labor unrest, work stoppages, or other
  short or longer term labor disruptions and other
  risks that are described from time to time in
  Power-One's Securities and Exchange Commission
  reports. See Risk Factors in the Companys
  2005 Form 10-K on file with the Securities and
  Exchange Commission for greater detail regarding
  factors that constitute cautionary statements
  with respect to such forward-looking statements,
  including certain risks and uncertainties that
  could cause actual results to differ materially
  from those in such forward-looking statements.
  Readers of this information are cautioned not to
  place undue reliance on these forward-looking
  statements, since, while we believe the
  assumptions on which the forward-looking
  statements are based are reasonable, there can be
  no assurance that these forward-looking
  statements will prove to be accurate. This
  cautionary statement is applicable to all
  forward-looking statements contained in these
  materials. We undertake no obligation to update,
  amend or clarify forward-looking statements,
  whether as a result of new information, future
  events or otherwise.